As of February 27, 2025, Ethereum (ETH) is trading at approximately $2,336, reflecting a downward trend over the past week. This decline is accompanied by a significant reduction in transaction fee revenue, with daily fees dropping to $731,472 on February 8, 2025—the first time since September 2024 that daily revenue fell below $1 million.

Ethereum's dominance in decentralized finance (DeFi) is also facing challenges. The network's Total Value Locked (TVL) has decreased by 12.5% over the past 30 days, now totaling approximately $54.32 billion. This decline highlights increasing competition from layer-2 scaling solutions like Base, Arbitrum, and Optimism, which offer users lower fees and faster transactions.

Technical indicators suggest potential further declines. The formation of a "death cross," where the 50-day moving average crosses below the 200-day moving average, is a classic bearish signal. Analysts warn that if Ethereum's price breaks below the crucial support level of $2,130, it could trigger a further drop toward the $1,500 range.

Investors and traders should exercise caution, as breaching this key support could accelerate the downward trend, leading to increased selling pressure and deeper losses in the short term.

DISCLAIMER: Cryptocurrencies carry high risk. This post is informational only and does not constitute financial advice. Unity does not recommend any investments. Investing in cryptocurrencies may result in loss of capital.